Return on Assets (ROA)
since 2015
Calculation
Etsy Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 12.88% | = | 100 | × | 493,507) | ÷ | 3,831,809) |
| Dec 31, 2020 | 14.52% | = | 100 | × | 349,246) | ÷ | 2,404,489) |
| Dec 31, 2019 | 6.22% | = | 100 | × | 95,894) | ÷ | 1,542,352) |
| Dec 31, 2018 | 8.59% | = | 100 | × | 77,491) | ÷ | 901,851) |
| Dec 31, 2017 | 13.51% | = | 100 | × | 81,800) | ÷ | 605,583) |
| Dec 31, 2016 | -5.14% | = | 100 | × | (29,901) | ÷ | 581,193) |
| Dec 31, 2015 | -9.78% | = | 100 | × | (54,063) | ÷ | 553,061) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in thousands
The financial performance from 2015 to 2021 is characterized by a transition from operational losses to substantial profitability, accompanied by a rapid expansion of the asset base. The Return on Assets (ROA) exhibits significant volatility, reflecting the interplay between accelerating net income and an aggressively growing balance sheet.
- Profitability Turnaround (2015–2017)
- A distinct recovery phase is observed between 2015 and 2017. Net income shifted from a loss of 54 million US dollars in 2015 to a profit of 81.8 million US dollars by 2017. This transition is mirrored in the ROA, which improved from -9.78% to 13.51%, indicating an efficient pivot toward positive returns on the existing asset base.
- Asset Expansion and Margin Compression (2018–2019)
- During this period, total assets grew significantly, increasing from 901.8 million US dollars in 2018 to 1.54 billion US dollars in 2019. Although net income remained positive and grew modestly, the pace of asset accumulation outstripped earnings growth. This resulted in a downward trend in ROA, which declined from 8.59% in 2018 to a period low of 6.22% in 2019, suggesting a temporary decrease in asset utilization efficiency.
- Accelerated Scaling and Optimization (2020–2021)
- A sharp increase in operational efficiency and profitability occurred starting in 2020. Net income surged to 349.2 million US dollars in 2020 and further climbed to 493.5 million US dollars in 2021. Despite the total asset base continuing to expand rapidly—reaching 3.83 billion US dollars by the end of 2021—the magnitude of income growth drove the ROA back up to 14.52% in 2020, before stabilizing at 12.88% in 2021.
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Comparison to Competitors
Etsy Inc., ROA, long-term trends, comparison to competitors
| Etsy Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 12.88% | 7.93% | 18.23% | 12.49% | 0.29% |
| Dec 31, 2020 | 14.52% | 6.64% | 21.94% | 10.85% | 13.55% |
| Dec 31, 2019 | 6.22% | 5.14% | 25.27% | 6.71% | 21.36% |
| Dec 31, 2018 | 8.59% | 6.19% | 19.38% | 9.77% | 18.55% |
| Dec 31, 2017 | 13.51% | 2.31% | 18.52% | 8.99% | 17.84% |
| Dec 31, 2016 | -5.14% | 2.84% | 16.47% | 8.14% | 19.81% |
| Dec 31, 2015 | -9.78% | 0.91% | 15.88% | 8.48% | 19.91% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Etsy Inc., ROA, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Etsy Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 12.88% | 9.17% |
| Dec 31, 2020 | 14.52% | 9.20% |
| Dec 31, 2019 | 6.22% | 8.83% |
| Dec 31, 2018 | 8.59% | 9.65% |
| Dec 31, 2017 | 13.51% | 7.39% |
| Dec 31, 2016 | -5.14% | 8.42% |
| Dec 31, 2015 | -9.78% | 7.99% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Discretionary)
Etsy Inc., ROA, long-term trends, comparison to industry (consumer discretionary)
| Etsy Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 12.88% | 7.99% |
| Dec 31, 2020 | 14.52% | 4.36% |
| Dec 31, 2019 | 6.22% | 5.57% |
| Dec 31, 2018 | 8.59% | 5.96% |
| Dec 31, 2017 | 13.51% | 4.05% |
| Dec 31, 2016 | -5.14% | 5.57% |
| Dec 31, 2015 | -9.78% | 6.25% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).